In Brief
Modi Transport Service sued M.P. Rajya Tilhan Sangh for settlement of coal transport accounts under agreements dated 1990 and 1991. During proceedings, Modi Transport sought appointment of a Chartered Accountant (S.K. Mantri) to audit disputed accounts. The trial court appointed Mantri, who submitted a report favouring Modi Transport. The defendant challenged this as an invalid arbitration award. The High Court upheld it as a valid arbitration under Section 21 of the Arbitration Act. The Supreme Court allowed the appeal, holding that Mantri was a commissioner, not an arbitrator, because there was no written agreement by both parties for arbitration. The Court distinguished arbitration (binding adjudication by consent) from expert determination (non-binding opinion to assist the court). The report was treated as a commissioner's report under the Civil Procedure Code, not an award.
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